Answer:
B
Explanation:
Payback period is the total time it takes an organization to recover the initial capital incurred in acquiring an asset.
It is expressed in years and fraction of years.
Initial investment 20,000
Year 1 3000 17000
Year 2 8000 9000
Year 3 15,000
9000/15000= 0.6 years
The payback period = 2.6 years
Answer:
The business is demonstrating ethical environmental practices.
Explanation:
The business is being mindful of the environment. Reduced carbon emissions are the remedy for global warming. Owners of these factories care about future generations. Workers in the factories will be healthier as a result of more fresh air.
Answer:
Depreciation for year 3 = $115518
BV = $57798
Explanation:
The modified accelerated cost recovery method employees a classification-based approach to depreciating certain assets, once classified are assigned respective rates of depreciation. for example, assets classified under automobiles, trucks and machinery are treated under 5-year MACRS and will be depreciated at 20%, 32%, 19.2% and so on.
In this question the bridge across Rio Grande being built by Del Norte Brick co is treated under 3-year MACRS, for which the rates are as follows:
33.33% for the first year
44.45% 2nd year
14.81% 3rd year
7.41% 4th year
We have been asked to determine 3rd years' depreciation and book value, determined as follows:
Depreciation year 1: $780000 33.33% = $259974
Depreciation year 2: $780000 44.45% = $346710
Depreciation year 3: $780000 14.81% = $115518
So the depreciation for year 3 = $115518
The book value is calculated as follows:
<em>Book value = cost - accumulated depreciation</em>
BV = $780000 - $722202
BV = $57798
The answer should be letter C.
